Whistleblower Complaint Reinstated by U.S. Dept. of Labor Administrative Review Board
New York, NY, April 2, 2013: Whistleblower Complaint Reinstated by U.S. Dept. of Labor Administrative Review Board.
The firm has successfully appealed and won an important ruling in Turin v. AmTrust Financial Services, Inc., et al., ARB Case No. 11-062, ALJ Case No. 2010-SOX-018, reinstating wrongful termination and
retaliation claims asserted by the Chief Operating Officer, General Counsel and Secretary of Maiden Holdings, Ltd. and Maiden Insurance Company under the Federal "Whistleblower Protection" provisions of the
Sarbanes-Oxley Act of 2002 ("SOX"). The claims were asserted against the Maiden entities as well as affiliated publicly traded companies and their executive officers. The decision will be posted on the
Department of Labor website and is expected to be reported.
The primary issue on appeal was the legal effect of a "standstill" agreement entered into between the parties, within the period of the SOX statute of limitations, which effectively prevented the timely
filing of the complaint until after the limitations period had run. The Administrative Review Board (the "ARB") ruled that, in the circumstances of the case, the complainant is entitled to "equitable modification"
of the limitations period, reversing the previous determinations to the contrary by the Department of Labor Investigator and Administrative Law Judge that the complaint was time barred.
The Decision also clarified the rules concerning the assertion of SOX Whistleblower claims against controlling entities and de facto "joint employers", and held that the complainant was entitled to pursue his claims not only
against his employer of record but an affiliated entity as well.
This Decision is expected to be an important pro-employee precedent in SOX and other "Whistleblower" cases.
The ARB remanded the complaint for further proceedings and the firm expects to now move forward with the case on the merits.